Jemel Lyles, 43, of Washington, DC, was sentenced by District Judge Deborah L. Boardman to 66 months in federal prison and three years of supervised release for conspiracy to commit wire fraud and aggravated identity theft. Lyles was also ordered to pay $281,947 in restitution after admitting to submitting applications for and receiving funds from six fraudulent loans under the CARES Act. He committed these offenses while on supervised release from a previous federal conviction related to obstruction of an audit.
The announcement was made by Kelly O. Hayes, U.S. Attorney for the District of Maryland, along with Special Agent in Charge William J. DelBagno of the FBI’s Baltimore Field Office.
The CARES Act, passed in March 2020, provided financial relief to Americans affected by the COVID-19 pandemic through programs such as the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL), both administered by the Small Business Administration. These programs were designed to help small businesses retain employees and meet other expenses.
According to court documents, between April 2020 and February 2021, Lyles obtained six fraudulent PPP loans by inflating business payrolls and employee numbers on applications. He also submitted false payroll documentation and tax records as part of his scheme. Regulations prohibit individuals with prior felony fraud convictions from obtaining PPP funds if they have a reportable ownership interest in a business; Lyles concealed his involvement or control over applicant businesses to circumvent this restriction.
In some instances, Lyles omitted his ownership interest in companies such as Green Capital Construction and Landscape, LLC (Green Capital) and JSL Investments LLC when applying for loans. In others, he used another individual’s identity—his friend and employee—to apply for PPP loans that were then deposited into accounts he controlled. The misused funds went toward personal expenditures including a home gym, jewelry, child-support payments, retail credit accounts, food purchases, and investments.
Lyles defrauded approximately $281,900 from PPP lenders and the United States government.
The Maryland COVID-19 Strike Force is one of five teams established nationwide by the Department of Justice to investigate large-scale pandemic relief fraud involving criminal organizations or transnational actors. These strike forces use interagency efforts led by prosecutors and data analysts to identify those responsible for stealing pandemic relief funds.
Kelly O. Hayes stated: “U.S. Attorney Hayes commended the FBI for its work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorney Joseph L. Wenner, who is prosecuting the federal case, and recognized the Maryland COVID-19 Strike Force and Paralegal Specialist Joanna B.N. Huber for their valuable assistance.”
For more information about reporting pandemic-related fraud or learning about resources available through the Maryland U.S. Attorney’s Office:
justice.gov/coronavirus
justice.gov/disaster-fraud/ncdf-disaster-complaint-form
justice.gov/usao-md
justice.gov/usao-md/community-outreach
